Jacaranda Advisory

Industry Update - June 2014 - No. 116

Queensland Gaming Revenue Trend 

June 2014 has shown an increase in gaming revenue growth for Queensland Hotels and Clubs.

Total state gaming revenue has increased 3.97% on June 2013.

The growth and decline that the gaming industry (as a result of the 100% non smoking ban introduced 1 August 2006, and economic factors) has experienced since January 2007 on a yearly month on month basis are illustrated in the following graph:




Calculated from Data sourced from the Queensland Government - Office of Liquor & Gaming Regulation

The Office of Liquor & Gaming Regulation have now upgraded their statistics to use the 2011 Census data Statistical Area Level 4 reporting areas.

A comparison of each area to the same month last year and also 30 June financial YTD performance is outlined below:

EGMs Net Metered Win
Area Increase/Decrease Increase/Decrease
Calendar YTD Jun 2014/Jun 2013 Financial YTD Jun 2014/Jun 2013
Brisbane East 4.19% 4.97%
Brisbane North 2.82% 4.61%
Brisbane South 4.57% 5.92%
Brisbane West 11.51% 8.43%
Brisbane Inner City 4.33% 0.92%
Cairns 7.44% 5.53%
Darling Downs -4.53% 3.36%
Fitzroy -0.11% -2.69%
Gold Coast 5.73% 6.54%
Ipswich 10.48% 4.22%
Logan - Beaudesert 3.00% 1.82%
Mackay -1.88% -5.04%
Moreton Bay North -0.22% 1.68%
Moreton Bay South 10.37% 5.41%
Queensland - Outback 6.69% 1.25%
Sunshine Coast 6.89% 5.85%
Toowoomba 1.34% 3.82%
Townsville 1.83% -0.65%
Wide Bay 0.97% -0.65%
Queensland TOTAL 3.97% 2.94%

Source: Calculated from Data sourced from the Queensland Government - Office of Liquor & Gaming Regulation 


Club EGM entitlements price increase

There has been an increase in the price for gaming machine entitlements in the Western and South East zones, with entitlements currently trading at approximately $4,000 - $4,500 directly between clubs.  This is up on previous prices reported for these two zones.  We believe some of this increase can be attributed to the March 2014 change in legislation allowing clubs in Queensland to hold a total of 300 entitlements in a single premise, rather than the previous limit of 280, combined with the state trading zones being abandoned for clubs.

The results of previous tenders held by the Queensland government are as follows:

 

 

SOUTH EAST

COASTAL

WESTERN

 

Tender

Closing Date

Sold

Avg Price

Sold

Avg Price

Sold

Avg Price

Contribution to CF

5

18/09/13

0

0

33

$5,708

0

0

$171,227

4

12/09/12

0

0

52

$10,118

0

0

$478,315

3

21/09/11

0

0

46

$11,543

0

0

$428,727

2

16/02/11

19

$6,069

70

$14,710

0

0

$1,040,913

1

17/02/10

13

$6,577

77

$11,345

0

0

$871,892

Source: Queensland Government - Office of Liquor Gaming and Racing

These tender results exclude prices negotiated in the direct club to club sale transfer transactions.

Clubs transferring EGM entitlements between zones

Previously, EGM entitlements held by clubs were only allowed to be traded within the same entitlement region as that displayed on the club's licence, being the South East, Coastal, or Western region.

Entitlements are now able to be transferred across all three zones, provided that the transferee club holds a gaming licence and the approved number of gaming machines for the club exceeds the number of entitlements currently held.  This may require the club to obtain approval for a licence, or an increase in the approved number of gaming machines from the Office of Liquor Gaming and Racing.

If you require assistance with gaming machine increases, applications, transfers, or community impact studies please contact us.

EGM operating authorities for hotels

Sales of EGM operating authorities for hotels are conducted by competitive tender in each of the three authority regions and authorities are only able to be sold in the region from which they originated.  Operating authorities can only be obtained by participating in an authorised sale, which is essentially a tender auction, conducted by the Public Trustee of Queensland.

Details of the average price paid in previous tenders are as follows:


Source: Queensland Government - Office of Liquor Gaming and Racing
If you would like to discuss any matters please feel free to give us a call on 07 3234 8917 or alternatively email one of the team Frank Balzary at frankb@hmw.com.au, Steve Koman at steve@hmw.com.au. We look forward to hearing from you.

Yours Faithfully
                                        
Steven Koman                                                     Frank Balzary
Director                                                                 Director

 

 

 

 

 

Contact Us:
Phone: +61 (7) 3367 1994
Email: 
steve@jacarandaadvisorygroup.com.au
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